BMW Reports Lower Profits in Q2, Maintains FY25 Forecast; Plans to Acquire Up to 2 Billion Euros Worth of Shares in a Third Buyback Program Installment
In a recent announcement, BMW Group has released its financial results for the second quarter of 2022, along with its outlook for the fiscal year 2025.
Deliveries of BMW Group's automotive vehicles in Q2 2022 increased slightly by 0.4 percent to 621,477 units, compared to the same period last year. However, the company's net profit decreased by 31.9 percent to 1.84 billion euros, and revenues also took a hit, dropping by 8.2 percent to 29.44 billion euros in the Automotive segment.
Despite these challenges, BMW Group remains optimistic about its future. The company confirmed its fiscal 2025 outlook, citing sustained demand for its premium vehicles. BMW Group anticipates slight sales growth for fiscal 2025, with fully-electric vehicles contributing to a slightly higher share of deliveries.
In terms of financial metrics, BMW Group expects Automotive segment EBIT margin to be in the range of 5 to 7 percent for fiscal 2025. The Motorcycles Segment is forecasted to see a slight increase in sales and an EBIT margin within the target range of 5.5 to 7.5 percent. Group earnings before tax for fiscal 2025 are expected to be on par with the previous year.
To support its shareholders, BMW Group's Board of Management has approved a third share repurchase program with a volume of up to 2 billion euros, to be completed by April 30, 2027. The first tranche of this program began in May 2025, but specific details regarding the schedule and earnings impact of the program have yet to be disclosed. For precise, up-to-date details on BMW Group’s share repurchase program for 2025-2027, please refer to BMW Group's latest official financial communications or investor relations releases published in 2025.
BMW Group's Motorcycles deliveries in Q2 2022 decreased by 8 percent to 61,300 units, compared to the same period last year. Despite this decrease, the company remains committed to its motorcycle business and is optimistic about its future prospects.
In conclusion, while BMW Group faced challenges in Q2 2022, the company remains optimistic about its future and is taking steps to support its shareholders through a share repurchase program. With a focus on sustainable growth and the increasing adoption of electric vehicles, BMW Group is well-positioned for the future.
- BMW Group is considering increasing its investments in technology to enhance its premium vehicles and support sustainability, as reflected in its outlook for a slight sales growth and a higher share of electric vehicle deliveries in fiscal 2025.
- The general news about BMW Group's economic trajectory also includes the company's decision to repurchase shares, with the approval of a third share repurchase program worth up to 2 billion euros, aimed at maintaining shareholder support.
